On the Daily chart above, since the start of this week, the upward trend line that was broken downward last week, and the negative MACD divergence have helped us to maintain our bias for a downward price move. Monday’s low (which we’ve highlighted using the blue broken line) @ 1.6093 was a critical support throughout yesterday. It was broken earlier today, and as a result, our bearish bias has been reinforced.
On the H4 chart above, from a day-trade perspective, we are still very much in a nice downtrend: price keeps forming lower highs and lower lows. Price has broken the most recent swing low @ 1.6093 (which also happens to be Monday’s low) downward. This is another good sign supporting a short trade.
However, we still need our hourly charts – using Fibonacci retracement levels and important resistance levels – to seek promising areas to take our short positions. Price pattern on the hourly must also be forming lower highs and lower lows. Please note that our aim is to sell a rally in today’s down trend.
Also, PATIENCE is the key here: we need to patiently wait for the hourly retracement. It might happen, and it might not.
However, we still need our hourly charts – using Fibonacci retracement levels and important resistance levels – to seek promising areas to take our short positions. Price pattern on the hourly must also be forming lower highs and lower lows. Please note that our aim is to sell a rally in today’s down trend.
Also, PATIENCE is the key here: we need to patiently wait for the hourly retracement. It might happen, and it might not.
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